OT_BCulum notes - euroac

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Firms vary considerable in governance and organizational capabilities The governance of firms varies in three major ways: 1. the degree of autonomy from investors, banks and other sources of finance 2. degree of dependence on skills employees for problem solving and capability development 3. degree of dependence on suppliers, customers and collective associations for innovation, knowledge and capabilities Three distinct types of organizational capabilities: 1. coordinating 2. organizational learning (developing routines) 3. reconfiguring Friday, 25th Feb, 2011 The New Institutionalism (Uwe Schimank / Frank Meier) Reading: meyer/rowan: - look at individual organization - empirical starting point - similarity of organizations - no existence of “one best way” - weber and taylor - efficiency and effectiveness are main goals in organizational development - actions are strongly shaped by institutions (neoinstitutionalism) - institutions are patterns which gives solutions: this is how it should be done; patterns are taken for granted, no alternatives, everything else would be called irrational, immoral, even crazy - organizations must ask themselves: what is rational? - institutions: legitimate patterns - rationality - not primarily orientations of organizations, but secondary - primary: equisition of legitimacy by the organization (it can be doe by conforming institutional patterns of rationality) - nobody knows what is really rational, but what is consider to be rational - “rational institutional myths” - institutional patterns vs. actual needs and practice - “de-coupling” as a solution - talk vs. action - organizational hypocrisy DiMaggio/Powell, 1983 - what does this pattern means for the organizational field/for the organizational society - the concept of Isomorphism (this is their starting point and answer) - common search for legitimacy which organizations must have - competitive pressures - only limited number of organizational structures survive over time on highly competitive market (similar to ecology population) - isomorphism not because of the competitive external pressures but due to institutional pressures!!!
Three mechanisms of institutional isomorphism: - coercive isomorphism (government make new roles that pose to the university, NPM) - normative isomorphism (organizational structures are prescribed; often used as an explicitly policy of change in institutions - institutions will recruit people with only, e.g. MBA i these people will shape the institutions and its structures and changes by the knowledge they have so far) - mimetic isomorphism (every organization is asking themselves what do other organizations do? and copy-paste is usually happening - this reflect the organizationsʼ uncertainty between their means and end/goals - the greater uncertainty there is, the greater possibility that organization will copy other organizations that find similar to itself) DiMaggio, 1988 - merits and limits of institutional theory - no common agreement on the theory of actor, nor on the theory of institutional action and change - implicitly: interest-driven behavior - 2 universal interest of organizations and actors: (I) interest in certainty and predictability and (II) survival - they provide stability, possibility to predict future events - institutions strive to gain and to maximize their legitimacy, and legitimacy is necessary prerequisite for survival - his most essential focus is on the question how do institutions change? Answer: if actors are intentionally trying to effect to institutions, the dynamics of institutions, its creation and reproduction - Politics of Institutionalization - institutional work - the concept of institutional work is an attempt to shift the focus to purposive actions of individuals and/or organizations within the neoinstitutional framework - institutional work implies activities rather then accomplishments + cognitive and/or physical efforts involved (Lawrence et al. 2009) - institutional entrepreneurship (in the last decades lots of papers have been published within the filed of institutional entrepreneurship, looking for the powerful actors) Lawrence/Suddaby/Leca 2008 - broader idea of intentional actor trying to change institutional structures - we donʼt need to have one powerful actor, but several actors that are not powerful, do not possess much resources - distributed agency - institutional work - the purposive action of individuals and organizations aimed at creating, maintaining and disrupting institutions - broader concept - it includes institutional entrepreneurship but also other actions that can affect institutional dynamic - it is institutional work when there is intention to affect institutional change - broad, open concept, they did not want to exclude any kind of work/action on institutional work
Page 1: ORGANIZATION THEORY Wednesday, 23rd

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